Insurance firm calls for action over ‘epidemic’ of fraudulent sickness claims
An insurance and risk law firm is calling for industry-wide action to deal with an ‘epidemic’ of holidaymakers making fraudulent illness claims.
BLM commissioned YouGov to survey 2,000 British consumers on their attitudes to sickness claims on all-inclusive holidays after noticing a significant rise in the number of travel claims in the last year.
It found nearly half (46%) think it would be acceptable to make a claim for food poisoning even if they weren’t sure their illness was the fault of the hotel.
According to BLM, the travel industry has been hit by a dramatic rise in gastric illness compensation claims, with holidaymakers urged to put in speculative claims against operators and hotels.
"It is not exaggerating to call this situation an epidemic," said Sarah Hill, partner and head of fraud at BLM.
"Claims management companies have identified this as fertile ground and there is a deep pool of potential claimants up for grabs.
"There needs to be some level of consumer education, as almost half of those surveyed think this practice is acceptable. In reality, it is against the law and is pushing up holiday prices."
The firm said claims companies are proactively chasing potential targets, often using social media to trawl for potential claimants.
They say they are also targeting customers through phone calls and approaches abroad.
BLM’s survey found 5% of people have received an unsolicited call about making a claim, and 5% of all-inclusive holiday goers have been approached to make a claim during a holiday.
The figure rises to 15% of all-inclusive holidaymakers with two or more children in their household.
"Payouts typically range between £500 and £2,000, and many people are seeing this as a quick and easy way to make some money, with CMCs assuring their targets that they are entitled to make these claims," said Hill.
"The industry needs to come together with government to develop a solution to this issue. It needs addressing in the same way whiplash claims were, with regulation that drives rogue CMCs out of the market. If left unchecked, this could threaten the future of the travel industry.
The call came after a group of hoteliers from Benidorm, the Costa Blanca and Valencia announced they would be taking a stand against a growing compensation culture in the UK.
They have also noticed a huge rise in the number of false claims this summer and claims it is costing the Spanish hotel industry over €60 million a year.
The Foreign Office has even updated its travel advice for Spain warning holidaymakers of the increasing number of claims companies targeting Britons in resorts, encouraging them to make false insurance claims regarding holiday sickness.
It warned that fraudulent insurance claims are illegal and could land holidaymakers in prison.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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